The EPA’s proposed “Good Neighbor” plan is expected to cut pollution from power plants and other industrial sources for millions of Americans living downwind of those sources. This type of pollution significantly contributes to ground-level ozone, or smog.

The proposal relies on commonly used and affordable pollution controls to help 25 states fully resolve their Clean Air Act (CAA) “good neighbor” obligations for the 2015 National Ambient Air Quality Standards (NAAQS).

The CAA’s “good neighbor” or “interstate transport” provision requires each state to submit a state implementation plan (SIP) to ensure sources within one state do not cause nonattainment or interfere with NAAQS maintenance in other states.  States are required to submit new SIPs within 3 years of the issuance of a new or revised NAAQS. For those states that fail to submit timely good neighbor SIPs or in the event the EPA disapproves a SIP, the EPA must submit a federal implementation plan (FIP) within 2 years to ensure the protection of downwind states.

“Following the science and the law, this ‘good neighbor’ plan will better protect the health of Americans across the country,” EPA Administrator Michael S. Regan says. “Air pollution doesn’t stop at the state line. This step will help our state partners meet air quality health standards, saving lives and improving public health in smog-affected communities across the United States.”

Beginning in 2023, the EPA’s proposed rule would “include electric generating units in 25 states in the Cross-State Air Pollution Rule (CSAPR) NOX (nitrogen oxides) Ozone Season Group 3 Trading Program, which would be revised and strengthened for the 2015 ozone NAAQS,” an EPA press release says. “And, beginning in 2026, EPA is proposing emissions standards for certain industrial sources in 23 states that have a significant impact on downwind air quality.”

The proposed limits on NOx power plant pollution would build upon existing CSAPR trading programs and incorporate additional features such as daily emissions rate limits on large coal-fired units to promote more consistent operation and optimization of emissions controls, limits on “banking” of allowances, and annual updates to the emissions budgets starting in 2025 to account for changes in the generating fleet. These features are expected to promote consistent operations of emissions controls.

Industries beyond the power sector subject to these proposed emissions standards include:

• Reciprocating internal combustion engines in pipeline transportation of natural gas;
• Kilns in cement and cement product manufacturing;
• Boilers and furnaces in iron and steel mills and ferroalloy manufacturing;
• Furnaces in glass and glass product manufacturing; and
• High-emitting, large boilers in basic chemical manufacturing; petroleum and coal products manufacturing; and pulp, paper, and paperboard mills.

The estimated cost to implement these emissions reductions is $1.1 billion. The EPA estimates 2026 monetized benefits from the proposed rule to be as high as $18 billion, with annual monetized net benefits of $15 billion each year from 2023 to 2042. (All monetary values are based on 2016 dollar values.)

“Together, these NOX control strategies would achieve health and environmental benefits that far outweigh the costs,” the EPA press release adds. “In 2026, EPA projects that the proposed rule would prevent approximately 1,000 premature deaths and avoid more than 2,000 hospital and emergency room visits, 1.3 million cases of asthma symptoms, and 470,000 school absence days.  Reducing ozone levels also would improve visibility in national and state parks and increase protection for sensitive ecosystems, coastal waters, estuaries, and forests.”

Once the rule is published in the Federal Register, the EPA will accept public comments for 60 days. The rule is expected to be finalized by year’s end.